Rama Phosphates Limited (RAMAPHO) AI Stock Analysis

• Market Cap: ₹3.80B
• Dividend Yield: 0.46%
• Average Volume (3M): 27.40K
• Price to Earnings (P/E): 10.1
• Beta (1Y): 1.30
• Revenue Growth: 22.68%
• EPS Growth: N/A
• Country: IN
• Employees: 510
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Agricultural Inputs
• EPS (TTM): 3.96
• Shares Outstanding: 35,302,460
• 10 Day Avg. Volume: 67,288
• 30 Day Avg. Volume: 27,403
• PEG Ratio: -0.16
• Price to Book (P/B): 0.84
• Price to Sales (P/S): 0.61
• P/FCF Ratio: 9.65
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 57 Neutral
• Price Target: ₹120.00 ▼(-29.87% Downside)
• Action: Reiterated Date: 02/26/26
• Date: Action: Reiterated 02/26/26

Overall score is driven by moderate financial performance (growth and improving profitability but with margin volatility, rising leverage, and recently improved cash flow). Technical indicators are notably weak and pull the score down, while the low P/E provides a valuation offset.

Positive Factors

Revenue Growth

Sustained ~20% reported revenue growth and a noted sharp increase in gross profit margins indicate expanding product demand and better top-line scale. Over 2-6 months this supports stronger market position, higher operating leverage potential, and a firmer base for reinvestment into production and distribution.

Free Cash Flow Improvement

The shift to positive free cash flow in 2025 marks a structural improvement in liquidity and capital self-sufficiency. Positive FCF reduces reliance on external financing for working capital or capex, enabling deleveraging, steady payout capacity, or reinvestment into core fertilizer production over the medium term.

Equity Position Strength

A strengthened equity base and healthy equity ratio provide a durable cushion against cyclical agricultural earnings. This bolsters solvency, supports credit access if needed, and allows the company to absorb commodity-driven volatility while funding capacity expansions or product diversification over coming quarters.

Negative Factors

Rising Leverage

An increasing debt-to-equity ratio raises financial risk, especially in a commodity-linked fertiliser business with seasonal cash flows. Higher leverage can pressure interest coverage, limit strategic flexibility, and amplify earnings volatility if margins compress or raw material costs spike over the medium term.

Margin Volatility

Persistent volatility in EBIT and net margins signals uneven cost pass-through, input price exposure, or operational inefficiencies. Over several months this undermines predictability of earnings and cash generation, complicating planning for capex, working capital and consistent shareholder returns.

Cash Management Discrepancies

Mismatch between operating cash flow and reported net income suggests timing or quality issues in cash conversion. If sustained, this can erode liquidity resilience despite positive FCF, increase short-term funding needs around seasonality, and constrain investment or debt reduction plans in the medium term.

Rama Phosphates Limited Business Overview & Revenue Model

Company Description

Rama Phosphates Limited engages in the manufacture and sale of fertilizers, chemicals, soya, and micronutrients in India. It operates through SSP Fertilizer, Chemicals, Power, Soya, and Micro Nutrients divisions. The company offers powder and granular single super phosphate fertilizers; various grades of nitrogen phosphorus potash mixed fertilizers; fortified fertilizers, such as boronated and zincated single super phosphate fertilizers; micronutrients, including magnesium sulphate, Sulphur dust, zinc sulphate, monohydrate, and zinc sulphate hepta-hydrate; and water soluble fertilizers. It also provides chemicals comprising sulphuric acid, oleum, and chlorosulphonic acid; and soya, lecithin, and de oiled cakes, as well as phospho gypsum and linear alkyl benzene sulphonic acid. Rama Phosphates Limited offers its products under the Girnar, Suryaphool, and Sampurn brand names. The company was incorporated in 1984 and is headquartered in Mumbai, India. As of 31 March 2022, Rama Phosphates Limited operates as a subsidiary of Silver Eagle Inc.

How the Company Makes Money

Rama Phosphates Limited primarily makes money by selling manufactured phosphate-based fertilisers and related products to the agricultural market through its distribution and dealer network, generating revenue from volume sales tied to seasonal crop demand. A secondary revenue stream comes from the sale of phosphate/chemical products and by-products used for industrial applications, where earnings are driven by contract/customer orders and commodity-linked pricing of key inputs and outputs. Profitability is influenced by raw material costs (phosphate rock/phosphoric acid and other inputs), plant utilization, product mix (fertiliser vs. industrial chemicals), and prevailing market prices; specific details on major customer contracts or named partnerships are null.

Rama Phosphates Limited Financial Statement Overview

Summary

Moderate fundamentals: strong revenue growth and improvement to positive net income support the score, but volatile EBIT/net margins, rising leverage (higher debt-to-equity), and only recently positive free cash flow keep it from scoring higher.

Income Statement

Rama Phosphates Limited has demonstrated significant revenue growth, particularly from 2024 to 2025, with a sharp increase in gross profit margins. However, the volatility in EBIT and net profit margins over the years indicates operational challenges. The transition from negative to positive net income is a notable improvement, but maintaining consistent profitability remains a challenge.

Balance Sheet

The company's equity position has strengthened over the years, showing a healthy equity ratio. However, the debt-to-equity ratio has increased, indicating growing leverage, which could pose a risk if not managed carefully. The stable growth in stockholders' equity is a positive indicator of financial health.

Cash Flow

Free cash flow has improved significantly, turning positive in 2025 after a period of negative cash flows, which is a positive sign for liquidity. However, the operating cash flow to net income ratio indicates potential discrepancies in cash management. Efficient cash flow management will be crucial for sustaining growth.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	8.17B	5.15B	4.33B	5.71B	4.90B	4.63B
Gross Profit	2.77B	2.23B	-720.70M	-975.08M	-1.13B	1.80B
EBITDA	816.94M	434.25M	-207.22M	722.57M	1.14B	624.07M
Net Income	422.26M	136.75M	-310.67M	409.34M	700.37M	421.09M
Balance Sheet
Total Assets	6.44B	6.34B	6.26B	5.34B	4.43B	3.11B
Cash, Cash Equivalents and Short-Term Investments	112.64M	36.69M	73.65M	62.42M	17.57M	8.72M
Total Debt	1.03B	1.26B	1.49B	1.18B	588.47M	54.98M
Total Liabilities	2.41B	2.63B	2.73B	2.25B	1.73B	1.07B
Stockholders Equity	4.03B	3.71B	3.53B	3.09B	2.70B	2.04B
Cash Flow
Free Cash Flow	0.00	324.44M	-131.67M	-464.73M	-429.47M	254.41M
Operating Cash Flow	0.00	399.05M	-51.04M	-362.60M	-85.82M	444.56M
Investing Cash Flow	0.00	-41.33M	-115.35M	-81.45M	-316.63M	-212.70M
Financing Cash Flow	0.00	-358.86M	164.22M	447.50M	402.07M	-233.45M

Rama Phosphates Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 171.10
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:RAMAPHO, the sentiment is Negative. The current price of 171.1 is above the 20-day moving average (MA) of 118.98, above the 50-day MA of 142.21, and above the 200-day MA of 151.20, indicating a bearish trend. The MACD of -8.77 indicates Negative momentum. The RSI at 35.10 is Neutral, neither overbought nor oversold. The STOCH value of 35.60 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:RAMAPHO.

Rama Phosphates Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KHAICHEM	62 Neutral	₹4.53B	9.32	―	―	67.43%	―
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
AGROPHOS	61 Neutral	₹623.63M	23.51	―	2.51%	69.30%	―
RAMAPHO	57 Neutral	₹3.80B	10.12	―	0.46%	22.68%	―
VIKASECO	52 Neutral	₹2.14B	-45.38	―	―	7.61%	-50.76%
NAGAFERT	48 Neutral	₹2.30B	-13.60	―	―	-100.00%	-101.18%
KANORICHEM	45 Neutral	₹2.58B	23.83	―	―	-1.30%	-27.85%

Rama Phosphates Limited Corporate Events

Rama Phosphates’ ICRA Outlook Upgraded to Stable as Ratings Reaffirmed

Rama Phosphates Limited announced that credit rating agency ICRA has reaffirmed the company’s existing ratings on its bank facilities totaling Rs 136 crore, with an improvement in the outlook on its long-term facilities from “Negative” to “Stable.” Long-term fund-based limits and term loans of Rs 80 crore and Rs 8 crore, respectively, remain rated ICRA A- with a Stable outlook, while short-term non-fund-based limits of Rs 48 crore continue at ICRA A2+. The revision in outlook signals a more positive view of the company’s credit profile and may support its standing with lenders and stakeholders as it manages its working capital and growth requirements.